Summary:
The IPO market is still on pause due to macro conditions like the upcoming presidential election and high interest rates.
Many top-tier startups are opting to stay private in 2024, including Skims, Chime, CoreWeave, Sword Health, Plaid, Figma, Stripe, Databricks, and Canva.
These companies are focusing on their internal growth and development, rather than seeking immediate liquidity through an IPO.
The full reopening of the IPO market is likely to happen in 2025.
The IPO Drought Continues: Top Startups Staying Private in 2024
While a few venture-backed tech companies have gone public in 2024, many investors are realizing that the IPO market is still on pause. Macro conditions like the upcoming presidential election and high interest rates are holding back the market, and the full reopening of the IPO market likely won't happen until 2025.
Despite the recent IPO success of companies like Reddit, Astera Labs, Ibotta, and Rubrik, many top-tier startups are putting their IPO plans on hold and opting to stay private. These include:
Skims
Kim Kardashian's popular underwear and loungewear brand Skims, valued at nearly $4 billion, is a prime example. While initially considered a likely IPO candidate, it's now confirmed that Skims won't be going public until at least the first half of 2025.
Chime
The challenger bank and fintech startup Chime has been on many investors' IPO hopefuls lists for a while. However, the company appears to be aiming for a 2025 listing. While Chime's valuation has recently rebounded after a downturn, it's clear that the company isn't rushing to the public market.
CoreWeave
CoreWeave, an AI company that recently raised a massive $1.1 billion Series C round, also seems to be delaying its IPO. The company is currently focused on its growth and is planning to go public in 2025.
Sword Health
Sword Health, an AI-powered virtual physical therapy startup, has also confirmed that it will not be going public until at least 2025. The company recently completed a tender offer for employee shares, further indicating that there is no urgent need to go public.
Plaid
Plaid, a B2B fintech company, has stated that it has no plans to IPO in 2024. This decision comes after the company hired a new CFO and seems to reflect a strategic focus on internal growth and development.
Figma
While Figma, a design unicorn, has not explicitly stated that it will not IPO this year, its recent actions suggest a delay. The company held a tender offer for its shares, a move typically not taken right before an IPO. The tender offer valued the company at $12.5 billion, suggesting a lack of urgency to go public in the near term.
Stripe
Stripe, a fintech unicorn valued at $65 billion, also held a tender offer for its employees, indicating that it's not immediately seeking public market liquidity. The company seems to be building its valuation back up before going public, potentially in the coming years.
Databricks
Databricks, an AI cloud platform valued at $43 billion, is not expected to go public in 2024. While the company raised $500 million in a Series I round last fall, it's likely that Databricks will wait for more favorable market conditions before entering the public market.
Canva
Canva, a design startup, is also unlikely to go public until at least 2025, if not 2026. The company's co-founder has confirmed that an IPO is at least 12 months away and will likely take place in the U.S. market.
The IPO market remains uncertain, and the timing of these companies' public offerings is subject to change. However, the current market conditions and strategic decisions by these startups suggest that a wave of IPOs is not expected until at least 2025.
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